Saturday, December 11, 2010

Lodgepole -- It Just Keeps Getting More Exciting

Lodgepole Land Services LLC, based in Bozeman, MT, just paid $11,600/acre for acreage in Billings County, SD, held by the Federal government.

I just did a google search for Billings County in South Dakota; it doesn't exist. That must have been a typo. There is a Billings County in North Dakota and there is, all of a sudden, lots of interest in the Lodgepole.

For those who want to see a map of the BLM parcels up for bid, click here.

For those who want to see what "they" paid for these leases, click here.  For newbies: the important column is "bonus/acre."  You need to scroll down to page 6 to see the $8 million bonus paid by Lodgepole Land Services for parcel 141:
Parcel 141
LODGEPOLE LAND SERVICES, 1763 MOFFIT GULCH RD, BOZEMAN, MT 59715
720 acres
Advance rental: $1,080.00
Bonus/acre: $11,600.00 (Four words: In.cred.i.ble.)
Total bonus bid: $8,352,000.00
Total price paid: $8,353,225.00
I guess my bid of $50/acre didn't make the cut.

I do believe $11,600 for any one acre bonus is the highest I have seen in the Bakken, and judging by the name of the bidder, this is not targeted toward the Bakken, but rather the Lodgepole.  The highest I have seen in the North Dakota Bakken is about $10,000.

Update: I did find a posting of mine earlier that talked about $12,500/acre.

4 comments:

  1. this parcel is located in section 24+25 , T 140,R100W. this is physically located 2 miles north of and then 2 miles west of Belfield ND. I do not know what there looking for but with in several miles to the NE of section 24 Whiting has 2 rigs drilling 2 seperate wells, permits number 19444 + 19623..it appears that the TFS pinchout is that prolific
    it is cold today in ND. -2 below as i type.

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  2. Bruce. That is Billings Cty ND. I don't believe the land sale was for the intent of the Lodgepole formation but actually to secure acreage that butts up against a Whiting 3 Forks well that was just drilled and everyone is very excited about. Just my opinion.

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  3. If Oil for America has "cracked the code" with regard to the Lodgepole, it's going to be an interesting 2011. The Lodgepole does not need fracking.

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  4. Thanks. My exuberance frequently gets the best of me. I get very excited and folks like you, Bri-VA, Don, embrace..., and a dozen others keep me in line.

    Thank you for your support. Every time I get a comment sent, I'm always worried I've stepped on someone's toes. My "Yahoo" mail says a comment has been sent, but I can't see the comment until I open it.

    It is amazing how little tidbits of information help complete the big picture, and how many folks outside of North Dakota have mineral rights and are very curious about what is happening.

    Speaking of which, there is a new website that will take aerial photos of "your" well and send a copy to you for a fee. When I get a moment I will link that website.

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